Information and telecommunications technologies such as the Internet, mobile phones and digital television have opened new channels of marketing. Consumers are increasingly using these technologies to access companies. Moreover, the increased affordability of these technologies allows small-business owners to promote their companies though innovative means. Fundamental theories of marketing need reinterpretation in the light of the new technologies.

Segments of One

According to market segmentation theory, to better serve the customers, the market is divided along some similarities. Technological advances allow moving from mass markets to segments of one. The interactive technology enables the customer to provide personal information and receive customized products and services.

Customer-Led Positioning

Positioning is the company's attempt to forge an image of the product in the customer's mind. Unlike physical retail, the customer manipulates and customizes the digital retail experience. Customers can organize an entire retail store based on product price, functionality or popularity. To better position products, managers should consider not only the specific product's features, but also present it in relation to the entire range of products and services the customer needs. For example, in pharmaceutical sales, customers are not just concerned about the effectiveness or price of a specific drug, but they are also keen on its interaction with other medications or health conditions. Additionally, effects of medication on general well-being and long-term health are important for a growing number of people.

Online Auctions

Online auctions are different from conventional auctions because of two reasons. First, the setting of an online auction is different from physical auctions. Second, researchers can observe and record the evolution of the real transaction. In this setting, bidders’ thoughts and actions are different. For example, the online auctioning scene is cluttered and noisy with uncertainty about the seller reliability and product quality; as a result, bidders tend to be biased toward items with existing bids and avoid similar items with no bids.

Relationship Marketing

Relationship marketing seeks to build customer loyalty. The interactive and personalized communications in digital marketing help in relationship marketing efforts. These characteristics, coupled with the possibility of having regular and frequent communications, improve customer loyalty. For example, online banking allows for customized alerts for deposits, debits, balance levels and reminders of payments. These features allow the customer to receive information based on her needs, improve service quality perceptions and increase loyalty.